Background
Larry Rossy, a third-generation shopkeeper, and Canadian entrepreneur, launched Dollarama. It all started in 1992 with one store in Matane, Quebec, and after twenty years, it became a household name and preferred shopping destination for Canadians from coast to coast. Dollarama is currently a preferred Canadian embrace retailer with over 1,000 locations. Neil Rossy, a fourth-generation merchant and co-founder of the Dollarama management group is in charge. Dollarama has grown over the years and now has 1314 locations across Canada, with plans to open 1700 more by 2027 (dollarama.com, 2021a). Dollarama’s business concept began with products sold at a fixed price of $1. Dollarama now has approximately 4000 goods ranging in price from $1 to $4. The framework will provide a complete analysis of the governance, TMT, and control of the board of directors and the board management of Dollarama Inc.
Board of Directors
The board of directors has the duty of supervising the corporation and management issues. The panel, either directly or through its members, advises the senior management, most probably through the CEO, to undertake the Corporation’s best interests. The board of directors consists of Neil Rossy, the president and member of the Board of Directors, Geoffrey Robillard – Senior Vice President, Nicolas Hien – Senior Vice President, Josee Kouri – Senior Vice President and Secretary (dollarama.com, 2021b). The Board directive is a set of policies designed to be part of the board’s dynamic governing structure. It employs with the support of its committees to execute the Corporation’s operations. It is not designed to generate any legally binding obligations. All relevant regulations, policies, and related legislation, and the Corporation’s articles and bylaws, should be considered when interpreting it.
Everyone, from the governance boards to the entire Dollarama personnel, is concerned about internal control. In Dollarama Inc., the extent of participation of the Board of Directors or Supervisory Boards in internal regulation alternates. It is the duty of the Executive Management or the Management Board to inform the Board of Directors about the critical aspects of the internal structures of control (Wang & Du, 2020). If the urgency occurs, the board can use its broad mandate to have the powers and verifications necessary to perform and take any other actions appropriate in the circumstances. The Audit Committee rigorously and regularly monitors the internal control system (Global News, 2021). The Audit Committee can evaluate the internal audit manager, form an opinion on how his department is structured, and be kept up to speed on its activities to carry out its duties with complete awareness of the information. Internal audit reports or summaries should be given to the Committee regularly.
The board usually reviews and is advisable to approves the organization’s strategic planning procedure and the organization’s annual strategic plan. The board analyzes the agenda for the management’s assessment, concentrating on trending concerns, significant business products and practices, risk issues, opportunities for the Corporation’s business, and the competitive environment in carrying out its responsibilities (Global News, 2021). Position descriptions for the chair of the lead director and each board committee are typically approved by the board of directors. The board usually reviews the Nominating and Governance Committee recommendations concerning the descriptions of the positions. Additionally, the board adopts the position description of the CEO, which entails delineating management responsibilities. The Board of Directors will have to support the CEO’s corporate aims and objectives. The board is required to review the position description at least once a year (Perold, 2021). The board is also required to review and approve the corporate strategic planning procedure and the annual strategic planning of Dollarama Inc.
Board Management
The operation management of the company consists of Neil Rosy, who is the president and the CEO, J.P Tower; the chief financial officer, Johanne Choiniere, the chief operational officer; Geoffrey Robillard, the senior vice president in charge of the import division, Nicolas Hien the chief information officer and Josee Kouri the senior vice president in charge of Legal affairs and corporate secretary. Dollarama Inc.’s board of directors analyzes the significant risks associated with the company’s effective and efficient operations. It examines the management’s application of the necessary management of risks. The Committee examines management reports about the performance of the materials and system flaws. Additionally, the Dollarama Inc. board is responsible for verifying management information, non-financial and financial business control have by established through the assistance of the management. At least in Dollarama’s annual year concerning the Nomination and Governance of Dollarama Inc, the board reviews the succession plans of Dollarama Inc. for the chairman of the Committee reviews the head director of the board, and the recruitment and training of the individuals specified (Chams, & GarcĂa-BlandĂłn, 2019). Dollarama Inc.’s Board of Directors must be satisfied with the CEO’s and other higher-ranking officials’ honesty and strive toward developing an essential culture.
A stock option offers the holder the right to buy Dollarama Inc. stock at a specific price for a set length of time, usually ten years. The price at which the options can be “executed” is usually the current stock price of Dollarama on the date the options are granted. If the company does well, the stock price will rise above the exercise price, increasing the value of the possibilities and rewarding the CEO for his contribution to Dollarama’s success (wsj.com, 2021). Dollarama is dedicated to serving its stockholders’ best interests (Perold, 2016). It aims to increase shareholder value through reliable and effective communication, strong financial performance, and intelligent business practices. The Investor Relations area contains the most up-to-date company information to help you understand Dollarama’s performance. Such options often cannot be exercised for some time, usually between one and five years, before they “vest” or become available to be used. Dollarama consists of a board that entails employees that are qualified (François Dauphin et al., 2021). Each director must understand the primary financial and principal objectives, strategies, plans, and financial positions and performances of Dollarama Inc. The Directors are required to have enough time to be in a position of undertaking their responsibilities and not assume duties that would change materially in their situations, such as the shift in the primary occupation are required to advise the chairman of the Compensation Committee (Dollarama Inc. 2020). When the chairman is not an impartial director, the integral directors will elect an independent individual to fill the role of lead director and exercise leadership roles to strengthen the board’s integrity (François Dauphin et al., 2021).
Dollarama’s board of directors has clearly defined positions and responsibilities within the company. The primary duty of the board of directors is to select the CEO of Dollarama Inc.’s general manager and to assess the general direction and strategy. The general manager or the Chief Executive Officer is in charge of recruitment of all other staff and overseeing the daily operations of Dollarama Inc. Challenges frequently arise when these rules are not followed (Ramakrishnan, 2017). There is a conflict when the Board of Directors attempts to interfere in the company’s daily operations. Dollarama Inc’s overarching policy choices, on the other hand, are not in the hands of management.
References
Chams, N., & GarcĂa-BlandĂłn, J. (2019). Sustainable or not sustainable? The role of the board of directors. Journal of cleaner production, 226, 1067-1081.
dollarama.com. (2021a). About Us – Dollarama. Dollarama.
dollarama.com. (2021b). Investor Relations – Dollarama. Dollarama.
François Dauphin, M. B. A., Allaire, Y., & Sambiani, M. (2021). The quest for diversity of boards of directors and in senior management of public corporations. igopp.org
Global News. (2021). Dollarama | News, Videos & Articles. Global News.
Perold, A. (2016). Harvard Business Publishing Education. Hbsp.harvard.edu.
Perold, A. (2021). Dollarama Inc. – Case – Faculty & Research – Harvard Business School.
Ramakrishnan, S. (2017). Dollar Tree’s plans to expand in Canada seen as risky. Reuters.
Wang, S., & Du, P. (2020). Retail Geography. Routledge.
wsj.com. (2021). DOL.CA | Dollarama Inc. Company Profile & Executives – WSJ.